While nearly half (49 per cent) of global institutional investors and wealth managers have reduced their investment levels in digital assets in the past 12 months, three-quarters (74 per cent) plan to increase their allocations in the year ahead, with 18 per cent saying they’ll dramatically increase investment levels, according to a new survey by London-based Nickel Digital Asset Management.
The survey polled institutional investors and wealth managers in Brazil, Germany, Singapore, Switzerland, the U.K., the United Arab Emirates and the U.S. that collectively manage around $3.5 trillion in assets.
It also found around seven per cent of respondents sold all of their digital asset holdings in the past year, while 13 per cent dramatically reduced their investments in the sector. Only around a third (38 per cent) said their organizations have increased investments in the sector in the past 12 months, with 13 per cent dramatically increasing investment levels.
Nearly nine out of 10 (87 per cent) respondents said they believe investment opportunities in the sector are attractive on a 12-month view, with 39 per cent saying investment opportunities are very attractive. Over five years, 92 per cent said investment opportunities are attractive, with 39 per cent describing them as very attractive.
“The strong performance of the digital assets sector year to date is reflected in the strengthening optimism by forward-looking allocators that the market has entered a sustainable recovery trend and offers an opportunity to engage,” said Anatoly Crachilov, chief executive officer and founding partner at Nickel Digital, in a press release.